Branded Legacy (Branded Legacy) Beneish M-Score : 0.00 (As of Jun. 09, 2024)

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What is Branded Legacy Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

The historical rank and industry rank for Branded Legacy's Beneish M-Score or its related term are showing as below:

During the past 7 years, the highest Beneish M-Score of Branded Legacy was 0.00. The lowest was 0.00. And the median was 0.00.

Branded Legacy Beneish M-Score Historical Data

The historical data trend for Branded Legacy's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Branded Legacy Beneish M-Score Chart

Branded Legacy Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Beneish M-Score

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-6.16

Branded Legacy Quarterly Data
	Dec15	Dec16	Dec17	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21
Beneish M-Score	Get a 7-Day Free Trial												-	-	-1.64	-10,000,000.00	-6.16

Competitive Comparison of Branded Legacy's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Branded Legacy's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Branded Legacy's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Branded Legacy's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Branded Legacy's Beneish M-Score falls into.

Branded Legacy Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Branded Legacy for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.749

0.528 * 0.458

0.404 * 0

0.892 * 0.6373

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.6813

4.679 * -0.35

0.327 * 3.0905

-6.16

This Year (Dec21) TTM:

Last Year (Dec20) TTM:

Total Receivables was $0.02 Mil.
Revenue was -0.06 + 0.101 + 0.009 + 0.015 = $0.07 Mil.
Gross Profit was -0.001 + 0.023 + 0.003 + 0.007 = $0.03 Mil.
Total Current Assets was $0.11 Mil.
Total Assets was $0.12 Mil.
Property, Plant and Equipment(Net PPE) was $0.01 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $0.35 Mil.
Total Current Liabilities was $0.07 Mil.
Long-Term Debt & Capital Lease Obligation was $0.42 Mil.
Net Income was 0.144 + -0.298 + -0.107 + -0.052 = $-0.31 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -0.099 + -0.04 + -0.094 + -0.038 = $-0.27 Mil.

Total Receivables was $0.04 Mil.
Revenue was -0.273 + 0.319 + 0.028 + 0.028 = $0.10 Mil.
Gross Profit was -0.179 + 0.178 + 0.012 + 0.012 = $0.02 Mil.
Total Current Assets was $0.14 Mil.
Total Assets was $0.15 Mil.
Property, Plant and Equipment(Net PPE) was $0.01 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $0.32 Mil.
Total Current Liabilities was $0.05 Mil.
Long-Term Debt & Capital Lease Obligation was $0.15 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(0.021 / 0.065)	/	(0.044 / 0.102)
	=	0.323077	/	0.431373
	=	0.749

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(0.023 / 0.102)	/	(0.032 / 0.065)
	=	0.22549	/	0.492308
	=	0.458

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (0.106 + 0.014) / 0.12)	/	(1 - (0.139 + 0.012) / 0.15)
	=	0	/	-0.006667
	=	0

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	0.065	/	0.102
	=	0.6373

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(0.004 / (0.004 + 0.012))	/	(0 / (0 + 0.014))
	=	0.25	/	0
	=	1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(0.345 / 0.065)	/	(0.322 / 0.102)
	=	5.307692	/	3.156863
	=	1.6813

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0.421 + 0.071) / 0.12)	/	((0.151 + 0.048) / 0.15)
	=	4.1	/	1.326667
	=	3.0905

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-0.313 - 0	-	-0.271)	/	0.12
	=	-0.35

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Branded Legacy has a M-score of -6.16 suggests that the company is unlikely to be a manipulator.

Branded Legacy Beneish M-Score Related Terms

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Branded Legacy (Branded Legacy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Branded Legacy Inc (OTCPK:BLEG) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

227 West 4th Street, Unit 108, Charlotte, NC, USA, 28202

Website

https://www.brandedlegacy.com

Branded Legacy Inc is a company engaged in the development and marketing of products for the fitness and wellness markets. The company is focused on creating products for health-conscious consumers. Through its subsidiary, the company focuses on the development and marketing of hemp-based food, beverage, and healthcare products including hemp coffee, hemp water, and hemp-based skincare products. It sells product to consumers, wholesalers as well as distributors.